16. Trust Formation and Change in M&A
Introduction
Trust is an essential component in all social exchange relationships. Executives and employees often find that the level of interpersonal trust is low in many organizations, and in M&As, it has many times deteriorated. Although control and legal mechanisms are adopted as substitutes to restore sufficient trust to necessary activities, in the M&A, much higher levels of trust are needed to deal with resistance to change and to overcome HR problems to successfully implement the post-merger integration (PMI) process. The development of trust and distrust and their effects on M&A performance have not been well articulated in current literature. The aim of this chapter is to describe in more details ...
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